What is the Canadian Equivalent to US 1099?

This is our main tax information forum which deals with topics concerning Canadians living and working in the U.S., U.S. citizens contemplating working in Canada, and all aspects of Canadian and U.S. income tax and related adminstrative issues.

Moderator: Mark T Serbinski CA CPA

Post Reply
webcite_99
Posts: 46
Joined: Fri Feb 18, 2005 8:45 pm

What is the Canadian Equivalent to US 1099?

Post by webcite_99 » Sat Dec 19, 2009 9:22 pm

Question: Canadian resident working in Canada for Canadian company as an independant contractor. Is there an equivalent form to the US 1099 and at what dollar amount per year must the Canadian corp issue (i.e. it is $600/yr in for the US).

Thanks.

nelsona
Posts: 16589
Joined: Wed Oct 27, 2004 2:33 pm
Location: Nowhere, man

Post by nelsona » Sun Dec 20, 2009 8:16 am

None that I know of.
Nelsona Non grata. Non pro. Search previous posts. Happy Browsing :D

baby_king_bob
Posts: 14
Joined: Tue Oct 13, 2009 7:00 pm

Post by baby_king_bob » Mon Dec 21, 2009 5:02 pm

Technically, the payments described would fall under T4A reporting. The threshold amount for T4A reporting is (I believe) $500 in the calendar year.

Most businesses do not file T4A's for payments to independent contractors and, in my experience, I've never seen a business penalized for non-compliance. For years there's been high-level discussion at the Revenue Agency about enforcing T4A filings to eliminate some of the underground economy, but nothing has ever come of this. I suspect it's because they recognize the administrative nightmare this would open (i.e. where do you draw the line? does Joe Schmoe issue a T4A to his plumber?).

Speaking of underground economies, I should note that the construction industry has it's own set of filing requirements for certain contract payments (the T5018).

Post Reply